COSTCO WHOLESALE Reports First Quarter FY2024 Earnings Results for December 14th
December 20, 2023
🌥️Earnings Overview
On November 30, 2023, COSTCO WHOLESALE ($NASDAQ:COST) reported the earnings results from the first quarter of FY2024, which ended on December 14. The quarter saw an increase in total revenue of 6.2%, amounting to USD 57.8 billion, and a year-over-year growth of 16.9% in net income, reaching USD 1.6 billion.
Price History
At the close of markets, COSTCO WHOLESALE stock opened at $641.2 and closed at $630.8, representing a decrease of 1.7% from the previous closing price of $642.0. The results from this quarter showed a decline in customer traffic and same-store sales, due to the pandemic that has impacted businesses across the world. The company is optimistic that as the pandemic begins to subside, it will be able to continue to increase its profitability and growth. Overall, COSTCO WHOLESALE reported positive results for FY2024 Q1 and is confident that it can continue to drive growth in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Costco Wholesale. More…
| Total Revenues | Net Income | Net Margin |
| 245.65k | 6.52k | 2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Costco Wholesale. More…
| Operations | Investing | Financing |
| 13.11k | -4.28k | -2.73k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Costco Wholesale. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 73.72k | 47.58k | 58.92 |
Key Ratios Snapshot
Some of the financial key ratios for Costco Wholesale are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.4% | 12.9% | 3.7% |
| FCF Margin | ROE | ROA |
| 3.6% | 21.9% | 7.6% |
Analysis
At GoodWhale, we have examined the financials of COSTCO WHOLESALE, and have found them to be quite strong. Our Star Chart analysis of the company reveals that its growth, profitability, and asset management are all very strong, while its dividend is medium. Furthermore, our Health Score analysis reveals that the company’s cashflows and debt are both healthy, suggesting that the company has the capability to not only pay off its debt but also fund future operations. We have classified COSTCO WHOLESALE as a ‘gorilla’, a type of company that we have concluded has achieved stable and high revenue or earnings growth due to its strong competitive advantage. This implies that this company is likely an attractive investment opportunity, and may be of particular interest to growth-oriented investors or those seeking a secure return on their investment. More…
Peers
The retail industry is highly competitive, with companies constantly vying for market share. Costco Wholesale Corp is no exception, and it competes directly with the likes of Target Corp, Takayoshi Inc, and Walmart Inc. All four companies are leaders in the retail space, and each has its own strengths and weaknesses.
– Target Corp ($NYSE:TGT)
Target Corporation is an American retail company that operates in the discount retailing industry. The company was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target Corporation operates 1,851 stores in the United States and Canada, and has a market cap of 71.52B as of 2022. The company’s return on equity is 34.09%. Target Corporation’s main competitors are Walmart and Amazon.
– Takayoshi Inc ($TSE:9259)
Takayoshi Inc is a Japanese company that manufactures and sells electronic products. It has a market cap of 8.99B as of 2022 and a ROE of -45.41%. The company’s products include computers, mobile phones, digital cameras, and other electronic devices. Takayoshi Inc has been in business for over 50 years and is a well-known brand in Japan.
– Walmart Inc ($NYSE:WMT)
With a market cap of 363.06B as of 2022, Walmart Inc. is a retail giant with a 16.44% return on equity. The company operates a chain of hypermarkets, discount department stores, and grocery stores. Walmart is the world’s largest company by revenue, with US$514.405 billion in 2020.
Summary
Investors can be pleased with Costco Wholesale‘s first quarter of FY2024, ending December 14, as the company reported total revenue of USD 57.8 billion, a 6.2% increase from the same period last year. Net income was up 16.9% to USD 1.6 billion year over year. This marks a positive start to the company’s financial year and could indicate a profitable trend for the rest of the year. Investors should watch Costco Wholesale’s performance over the next several quarters to determine if these results are sustainable.
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